Why Africa Is The Hottest Growth Opportunity Of The Century
Africa often gets left out of the emerging markets conversation. If anything, most of the continent is still considered a frontier market, or an emerging market of the future.
While countries like China represent the most attractive growth opportunities today, Africa is arguably the most exciting opportunity for the next century.
Why?
In one word: demographics.
"In Africa, the "young continent," projections are for the African population to exponentially grow from current levels, close to Europe, to four times the size, and approaching Asia, in the next 100 years (see Figure 3)," said Citi's Philip Watson.
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Africa’s structural transformation challenge
Long viewed as an economic basket case, Sub-Saharan Africa is experiencing its best growth performance since the immediate post-independence years. Natural-resource windfalls have helped, but the good news extends beyond resource-rich countries. Countries such as Ethiopia, Rwanda, and Uganda, among others, have grown at East Asian rates since the mid-1990’s.
Orthman plans to expand business in S. Africa
Orthman Manufacturing Inc. has opened a product assembly facility and warehouse in Kempton Park, South Africa.
The Lexington-based manufacturing company, which makes agricultural machinery and implements, announced the opening of the new plant today.
“Orthman’s objective to provide quality tools for the producer to be more efficient and productive applies not only in the U.S., but around the world,” Orthman President John McCoy said. “The facility in South Africa allows us to provide the right machinery and agronomic solutions for the land, ultimately helping the people of this region see greater success.”
Agribusiness Boom Soon For Africa
It is no secret that Africa is on the rise and increasingly offering lucrative opportunities to local businesses due to the continent’s steady economic growth, increased disposable income and high consumer confidence.
Charles Brewer, Managing Director of DHL Express Sub-Saharan Africa says that one particular sector which has seen significant growth in Africa is agribusiness, which entails the full value chain from agricultural production/farming through secondary processing, distribution and retailing to the end user/consumer (farm-to-fork concept).
